For the data behind the commentary, download the full Q1 2026 U.S. Life Sciences Report.
Q1 2026 Life Sciences Key Trends
- Demand was essentially flat in Q1, with net absorption of -23,600 square feet (sf). Tenant-in-the-market activity remains stable across major markets, with strong demand for cGMP space from pharmaceutical tenants.
- Asking rents averaged $65.48 per square foot (psf), down 3.4% year-over-year (YOY), though several markets posted rent growth. The overall vacancy rate rose 196 basis points (bps) to 23.6%, the smallest YOY increase in nearly three years. Sublease vacancy declined 10 bps YOY to 3.5%.
- New deliveries slowed to 1.2 million square feet (msf), nearly one-fifth of the 5.4 msf delivered in Q1 2025. The new construction pipeline has shifted decisively toward build-to-suit (BTS) projects; 72% of inventory under construction is now BTS, and the speculative share is at a five-year low.
- R&D property sales totaled $2.1 billion, down 12% YOY. Despite the decline, investor interest is building, highlighted by Healthpeak's $600 million acquisition of Blackstone's South San Francisco portfolio, the largest alternative asset deal in Q1.
- Venture capital funding totaled $8.0 billion in Q1, up 15% YOY, with most capital flowing to later-stage companies. Average deal size rose to a record $20 million, as investors took greater interest in making large investments in established companies. The initial public offering (IPO) market strengthened, with eight IPO’s raising more than $2.3 billion, nearly matching the $2.8 billion total for all of 2025.
For the data behind the commentary, download the full Q1 2026 U.S. Life Sciences Report.
